Dogecoin’s RSI Hints at Potential Hidden Bullish Divergence
Dogecoin's (DOGE) key momentum metric signals a hidden bullish divergence indicating a potential rally toward the $0.10 short-term resistance level. Additionally, the daily chart shows DOGE trading above the 200-day simple moving average, which is viewed as a bullish territory.
DOGE Hidden Divergence
The hidden bullish divergence is created by the Relative Strength Index (RSI), which has printed a lower low, while at the same time, the DOGE price is making a higher low.
This situation can help the bull case scenario as the price is falling at a slower pace than the RSI momentum.
If this hidden divergence holds, then DOGE's price may correct to $0.10, where we established a short-term resistance level.
A daily break and close above this level will open the door for further upside towards November's high at around the $0.15 level.
200-Day SMA
The 200-day Simple Moving Average (SMA) is a critical technical indicator that separates a bull market from a bear market.
Since the beginning of 2022, DOGE's price has traded below the 200-day SMA, signaling that we're in a bearish trend.
However, since last month, the DOGE price broke above the 200-day SMA, and we're technically in bullish territory.
In these conditions, as long as the DOGE price trades above the 200-day SMA, the bulls have the upper hand.
Additionally, the 200-day SMA perfectly aligns with the $0.07 critical support level, which is also the bottom following the FTX-driven crash.
